The United Auto Workers (UAW) union said on Wednesday that 190 workers went on strike at Mercedes-supplier ZF's plant in Alabama, demanding higher pay and better healthcare benefits.
The workers are also seeking an end to the tier system of wages, under which older employees get higher pay than newer workers for the same job.
ZF, which makes front axles used by Mercedes, said the plant in Tuscaloosa would operate while talks with the union continue.
US GOVERNMENT MONITORING SUSPECTED CHINESE SPY BALLOON OVER NORTHERN STATES
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"We remain committed to continuing negotiations in good faith and are hopeful that we can come to a resolution soon," a ZF spokesperson said in a statement.
UAW members are also on a separate strike at three plants operated by the Detroit Three automakers - Ford Motor, General Motors and Stellantis - demanding better contracts from the companies.
Mercedes-Benz said it was monitoring the situation.